Business community wants caveats placed on asset sales
7 June
Chamber of Commerce & Industry Queensland has urged the State Government to ensure the structural integrity of the budget is addressed before any asset sales are implemented.
Director, David Goodwin, said CCIQ is encouraged by the State Government's determination to achieve a budget operating surplus and restore the state's AAA credit rating, however remains concerned that the State Government needs to look at its own cost structure, which is the underlying cause of its financial difficulties.
"These difficulties were already visible before any global financial crisis," Mr Goodwin said.
"During downturns, the Queensland business community has to look at expenditure in order to balance the books. Businesses are understandably asking why the State Government should be any different.
"Our fear is that if the state's assets are sold, and the underlying high cost structure remains, we won't have any anything left in the closet worth selling for tomorrow's deficit.
"Without addressing the structural budget deficiencies, this problem will only compound in coming years and will be left for future generations to solve."
Mr Goodwin said the State Government needs renewed focus on the public service to address the budget deficit and that addressing public service costs is where hard but necessary budget decisions need to be made.
"More than 70 per cent of Queensland businesses have indicated they are opposed to the sale of Queensland Government owned corporations," Mr Goodwin said.
"Those businesses supporting a sale have placed stringent conditions on it, including adequate sale price, sufficient service levels and pricing safeguards.
"What is clear is that when asked which 'balancing the budget' option business prefers, 84 per cent favour finding savings within Government, while only 9 per cent favour asset sales."
These results demonstrate that before any sale is considered, or at least in conjunction with such a decision, the State Government must focus on achieving efficiencies in procurement and delivery of all Government services. Queensland business calls on Government to make the hard decisions.
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Media contact
David Goodwin
Director
Chamber of Commerce & Industry Queensland
m: 0405 229 778